Asking to those that understand the ins and outs of the precious metal markets.
Wanting to drop $5K into precious metals. cheapest silver ounce is $30.61 which tells me I'm loosing $4/ounce because of the spot price. Similiar idea with gold. Help walk me through the idea of purchasing these items even though they are seemingly dropping in value as soon as I buy them.
Also, how would you divide your precious metal portfolio 20/80 gold/silver. 50/50? and is that by dollar amount or by ounce, i was thinking of buying 2oz gold, and 20-25 ounce silver. gold was going to be 1oz bars, while silver 1oz coins.
please help me make sense of this, I know our paper dollar is loosing value and will continue to do so.
EDIT/UPDATE: I pulled the trigger, and I put PedoJoes stimulus money into silver. Bought 140 ounces
Unless you can negotiate a better price, the average bullion sellers have a big mark up from spot. There's talk about massive physical silver shortages, DO NOT buy into the "Dynamically vaulted" silver options because they actually won't have it, it'll just be on paper.
Especially now you want to have physical possession of metals. The talk is that silver will soon be exposed, and will fly, it's already done well from the beginning of this covid crap, that choice is yours. It has been higher than it is at the moment also in this last year.
Gold has fell back a bit, and that too had a big run up during this and has fell back slightly (I bought in March at the start as during crisis it usually does well) and could go lower?
I obviously can't give you any financial advice of what you buy and what price, all I will say again is make sure you have it in your possession! I've bought more silver than gold, just, and smaller values just because it could be easier to trade in the future for other stuff?
Oh yes, I should have mentioned this in my other post. The price of physical silver compared to the completely fraudulent paper silver (spot price) is irrelevant. Physical silver is in demand, paper silver is not. It is in the process of breaking free from its paper chains (market manipulations). Eventually the price of silver stock (which has no real backing for most investors) and physical silver will separate completely.
This means that if you intend to buy physical silver and sell it back in a month if the price goes up, you are probably not making a sound investment. If however you plan to keep it until the Bankers no longer hold it hostage (hopefully sooner rather than later) then it is one of the best investments you can make. Though I hear lead is also popular.